FLSA Update: There is still no decision on when—or if—the proposed new overtime regulations will go into effect. In May 2017, a new bill -- the Working Families Flexibility Act -- made it to the Senate. If it becomes law, it would amend the current Fair Labor Standards Act (FLSA) by permitting employers to offer paid time off as an alternative to time-and-a-half overtime wages. You can count on HRdirect to continue to monitor and keep you up to date on any changes.
On November 22, 2016, a federal district court temporarily blocked the Department of Labor’s (DOL) new overtime rules, just a week before the December 1 compliance deadline, specifically citing the new minimum salary threshold.
If you have not already adjusted employees for the new requirements, you can put those plans on hold for now. If you have implemented changes, you should not automatically reverse your decisions without ensuring your exempt positions are properly classified based on the FLSA’s “job duties” tests, which are not being questioned in the injunction. Salary threshold aside, it is estimated that millions of workers who were converted to nonexempt/hourly in preparation for the new rule were previously misclassified because they did not meet the law's strict duties tests for exempt status. Proper classification is still very important, especially in light of the heightened awareness of the overtime rules by employees.
Employers should be aware that this decision is a temporary injunction and the DOL will likely appeal.